# System D Inc.: business model and financials

> Latest period: FY ending Oct 2025, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第44期(2024/11/01－2025/10/31) (S100XHGC)
> Page: https://vizora.meequs.com/en/company/system-d
> Retrieved: 2026-09-30T20:58:24.825Z

## Company

System D, founded in 1982, is a company in Software & SaaS listed on TSE Standard. It has 290 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | System D Inc. |
| Ticker | 3804 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3804.T) |
| Listing | TSE Standard |
| Head office | 京都市中京区烏丸通三条上る場之町603番地 |
| Representative (per filing) | 代表取締役社長 堂山 遼 |
| Founded | Apr 1982 |
| Share capital | ¥484.3M |
| Employees (consolidated) | 290 |
| Average salary (parent only) | ¥5.9M |
| Fiscal year end | October |
| Website | www.systemd.co.jp (https://www.systemd.co.jp/) |
| Corporate number | 8130001021041 |
| EDINET | E05516 |
| Industries (Vizora) | Software & SaaS |

> Profile source: annual securities report (S100XHGC, filed 2026-01-28). As of filing

## Five-axis industry profile

Primary industry: Software & SaaS (2025-10-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 29 | 105 |
| Profitability | 70 | 145 |
| Cash conversion | 60.5 | 128 |
| Efficiency | 33.4 | 145 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 96% of System D's sales come from Siftware business, with Other making up much of the rest.
- Out of every ¥100 of sales, about ¥18 is left as operating profit.
- Revenue changed +8.7% from the prior year, operating profit +13.2%.

## Company structure

- Segment revenue mix: Siftware business 96.1%、Other 3.9%
- Revenue → net income: ¥5032292000 → ¥627894000
- Net income → operating cash flow: ¥627894000 → ¥1077824000（difference ¥449930000）
- Main uses of operating cash flow: CapEx ¥358730000 / dividends ¥141588000 / buybacks ¥94000
- Change in cash: ¥75157000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥5.03B |  |
| Operating income | ¥938.2M | Margin 18.6% |
| Net income | ¥627.9M | Margin 12.5% |
| Free cash flow | ¥719.1M |  |
| Largest business | Siftware business | of segment revenue 96.1% |
| Employees (consolidated) | 290 |  |
| EPS | ¥96.47 |  |
| Book value per share | ¥782.04 |  |
| Equity ratio | 68.0% |  |
| Shares outstanding | 6,498,000 |  |
| Treasury shares | 84,500 |  |
| Shareholders | 1,304 |  |
| Average salary (parent only) | ¥5.9M | Filing company only |
| Cash ratio | 28.5% | Cash ÷ revenue 41.7% |
| Vs. industry median margin | +6.2 pp | Software & SaaS |
| ROE | 13.2% | Derived from disclosed figures |
| ROA | 8.8% | Derived from disclosed figures |

## Notable figures

- FY2025, one segment accounts for 99% of positive segment profit
- FY2025, cash is 29% of total assets

## What changed in 5 years

| Metric | FY ending Oct 2020 | FY ending Oct 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥3854536000 | ¥5032292000 | +30.6% |
| Operating income | ¥727322000 | ¥938154000 | +29.0% |
| Operating margin | 18.9% | 18.6% | -0.2 pp |
| Employees | 228 people | 290 people | +27.2% |
| Cash and equivalents | ¥1087285000 | ¥2100894000 | +93.2% |

### Change in segment revenue mix

Span: FY ending Oct 2020 → FY ending Oct 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| ソフトウェア事業 → ソフトウェア事業 | 96.1% |
| ソフトウェア事業 → 事業再編・廃止 | 3.3% |
| その他 → その他 | 0.6% |
| 新設・再編 → その他 | 3.3% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Oct 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 5,032 | 100.0% | S100XHGC |
| Cost of revenue | 2,852 | 56.7% | S100XHGC |
| Gross profit | 2,181 | 43.3% | S100XHGC |
| SG&A | 1,243 | 24.7% | S100XHGC |
| Operating income | 938 | 18.6% | S100XHGC |
| Ordinary income | 944 | 18.8% | S100XHGC |
| Pretax income | 914 | 18.2% | S100XHGC |
| Income tax | 286 | 5.7% | S100XHGC |
| Net income | 628 | 12.5% | S100XHGC |
| Net income attributable to owners | 628 | 12.5% | S100XHGC |

## Per ¥100 of revenue（FY ending Oct 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 57 |
| SG&A | 25 |
| Operating income | 18 |
| (Ref.) Net income | 12 |

### Margin funnel

Gross margin 43.3% → Operating margin 18.6% → Net margin 12.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +8.7%; Core profit growth: +13.2%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 1.53×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Oct 2024 → FY ending Oct 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 4,632 | 5,032 | 401 | +8.7% |
| Gross profit | 2,004 | 2,181 | 177 | +8.8% |
| Operating income | 829 | 938 | 109 | +13.2% |
| Net income attributable to owners | 556 | 628 | 72 | +12.9% |
| Operating cash flow | 1,504 | 1,078 | -426 | -28.3% |
| Free cash flow | 1,102 | 719 | -383 | -34.7% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Oct 2019 | 3,567 | 536 | 15.0% | 383 | 776 | 273 | S100KLB1 |
| FY ending Oct 2020 | 3,855 | 727 | 18.9% | 511 | 1,124 | 562 | S100NA7W |
| FY ending Oct 2021 | 3,842 | 808 | 21.0% | 574 | 868 | 390 | S100Q01F |
| FY ending Oct 2022 | 4,233 | 898 | 21.2% | 592 | 1,170 | -318 | S100SON8 |
| FY ending Oct 2023 | 4,737 | 914 | 19.3% | 633 | 900 | 349 | S100V58M |
| FY ending Oct 2024 | 4,632 | 829 | 17.9% | 556 | 1,504 | 1,102 | S100XHGC |
| FY ending Oct 2025 | 5,032 | 938 | 18.6% | 628 | 1,078 | 719 | S100XHGC |

## People and productivity（FY ending Oct 2025, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥17.4M |
| Operating income per employee (consolidated) | ¥3.2M |
| Net income per employee (consolidated) | ¥2.2M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Oct 2021 | FY ending Oct 2022 | FY ending Oct 2023 | FY ending Oct 2024 | FY ending Oct 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 239 | 256 | 270 | 280 | 290 |
| Average salary (parent company) | ¥5.4M | ¥5.5M | ¥5.8M | ¥5.9M | ¥5.9M |
| Average age (parent company) | 36.3 years | 36.9 years | 37.6 years | 37.6 years | 36.5 years |
| Average tenure (parent company) | 9.4 years | 9.6 years | 9.8 years | 9.9 years | 9.3 years |

Year over year: Employees (consolidated) +3.6% · Revenue (consolidated) +8.7%

## Segments（FY ending Oct 2025, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Siftware business | 4,835 | 96.1% | 1,384 | 28.6% |
| Other | 197 | 3.9% | 17 | 8.4% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Siftware business | 96.1% | 98.8% | 2.7 | 28.6% |
| Other | 3.9% | 1.2% | -2.7 | 8.4% |

Segment → industry: Siftware business → Software & SaaS

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Oct 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 1,078 | 21.4% | S100XHGC |
| Capital expenditure | 359 | 7.1% | S100XHGC |
| Free cash flow | 719 | 14.3% | 算出 |
| Investing cash flow | -741 | -14.7% | S100XHGC |
| Financing cash flow | -262 | -5.2% | S100XHGC |
| Dividends paid | 142 | 2.8% | S100XHGC |
| Share buyback | 0 | 0.0% | S100XHGC |
| Change in cash | 75 | 1.5% | S100XHGC |
| Cash and equivalents | 2,101 | 41.7% | S100XHGC |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Oct 2021 | FY ending Oct 2022 | FY ending Oct 2023 | FY ending Oct 2024 | FY ending Oct 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 1,135 | 1,225 | 1,187 | 2,026 | 2,101 | S100SON8, S100V58M, S100XHGC |
| Total assets | 4,696 | 5,900 | 6,246 | 6,963 | 7,361 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Net assets | 3,099 | 3,579 | 4,093 | 4,506 | 5,007 | S100SON8, S100V58M, S100XHGC |
| Share capital | 484 | 484 | 484 | 484 | 484 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Inventories | 55 | 113 | 90 | 59 | 115 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Property, plant and equipment | 750 | 1,829 | 1,997 | 1,973 | 1,955 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Intangible assets excluding goodwill | 1,444 | 1,338 | 1,398 | 1,285 | 1,136 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Goodwill | 91 | 70 | 198 | 173 | 148 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Investment securities | 16 | 23 | 38 | 33 | 63 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Current assets | 1,924 | 2,120 | 2,213 | 3,078 | 3,611 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Current liabilities | 1,243 | 1,599 | 1,517 | 1,918 | 1,927 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Trade payables | 215 | 161 | 192 | 219 | 196 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Long-term borrowings | 8 | 433 | 313 | 193 | 73 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Total liabilities | 1,597 | 2,320 | 2,152 | 2,458 | 2,353 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Equity attributable to owners of parent | 3,104 | 3,581 | 4,085 | 4,502 | 4,984 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Retained earnings | 2,145 | 2,621 | 3,126 | 3,533 | 4,006 | S100Q01F, S100SON8, S100V58M, S100XHGC |
| Treasury stock | -144 | -144 | -144 | -135 | -126 | S100Q01F, S100SON8, S100V58M, S100XHGC |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 28% | S100XHGC |
| Inventories | 2% | S100XHGC |
| Property, plant and equipment | 27% | S100XHGC |
| Intangibles and goodwill | 17% | S100XHGC |
| Investment securities | 1% | S100XHGC |
| Other assets | 25% | S100XHGC |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 3% | S100XHGC |
| Other liabilities | 29% | S100XHGC |
| Equity | 68% | S100XHGC |

### Balance sheet history

| Metric | FY ending Oct 2021 | FY ending Oct 2022 | FY ending Oct 2023 | FY ending Oct 2024 | FY ending Oct 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 4,696 | 5,900 | 6,246 | 6,963 | 7,361 |
| Equity | 3,099 | 3,579 | 4,093 | 4,506 | 5,007 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 1,135 | 1,225 | 1,187 | 2,026 | 2,101 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 38.8% | S100XHGC |
| Fixed assets ÷ total assets | 26.6% | S100XHGC |
| Goodwill ÷ parent equity | 3.0% | S100XHGC |

Goodwill over 4 years: 91 → 148 JPY; total investing cash flow: -3,787 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 28.5% |
| Cash ÷ revenue | 41.7% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 114.9% |
| Cash vs. profit gap | 450 JPY mn (of net income 71.7%) |
| Shareholder returns / net income | 22.6% |
| Shareholder returns / FCF | 19.7% |
| Shareholder payments — dividends / net income | 22.5% |
| Shareholder payments — dividends / FCF | 19.7% |
| CapEx intensity (capex ÷ revenue) | 7.1% |
| Investing CF relative to operating CF | 68.7% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | 14.9% | 0.82× | 12.2% | 1.51× | 18.5% | S100Q01F |
| 2022 | 14.0% | 0.80× | 11.2% | 1.59× | 17.7% | S100SON8 |
| 2023 | 13.4% | 0.78× | 10.4% | 1.58× | 16.5% | S100V58M |
| 2024 | 12.0% | 0.70× | 8.4% | 1.54× | 12.9% | S100XHGC |
| 2025 | 12.5% | 0.70× | 8.8% | 1.51× | 13.2% | S100XHGC |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| USBK NA JP I＆W TS (常任代理人 株式会社三菱ＵＦＪ銀行) | Major shareholder | 18.5% | 2025-10-31 |
| 株式会社トライ | Major shareholder | 14.0% | 2025-10-31 |
| LICHFIELD LP DIRECTOR WOLF JOHANN (常任代理人 株式会社三菱ＵＦＪ銀行) | Major shareholder | 6.2% | 2025-10-31 |
| INTERACTIVE BROKERS LLC (常任代理人 インタラクティブ・ブローカーズ証券株式会社) | Major shareholder | 6.0% | 2025-10-31 |
| THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD -SINGAPORE BRANCH PRIVATE BANKING DIVISION CLIENT A/C 8221-563114 (常任代理人 香港上海銀行東京支店) | Major shareholder | 5.7% | 2025-10-31 |
| TAKUMI CAPITAL MANAGEMENT MASTER FUND LP(常任代理人 香港上海銀行東京支店) | Major shareholder | 5.0% | 2025-10-31 |
| 堂山 達子 | Major shareholder | 4.8% | 2025-10-31 |
| 京セラコミュニケーションシステム株式会社 | Major shareholder | 3.9% | 2025-10-31 |
| 堂山 遼 | Major shareholder | 3.4% | 2025-10-31 |
| システムディ従業員持株会 | Major shareholder | 3.3% | 2025-10-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第44期(2024/11/01－2025/10/31) | S100XHGC | 2026-01-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100XHGC,, |
| 有価証券報告書－第43期(2023/11/01－2024/10/31) | S100V58M | 2025-01-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100V58M,, |
| 有価証券報告書－第42期(2022/11/01－2023/10/31) | S100SON8 | 2024-01-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100SON8,, |
| 有価証券報告書－第41期(2021/11/01－2022/10/31) | S100Q01F | 2023-01-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100Q01F,, |
| 有価証券報告書－第40期(令和2年11月1日－令和3年10月31日) | S100NA7W | 2022-01-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100NA7W,, |
| 有価証券報告書－第39期(令和1年11月1日－令和2年10月31日) | S100KLB1 | 2021-01-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100KLB1,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).